Two For One Office Building
Investment Info:
Office Space commercial investment investment.
Purchase price: $205,000
Cash invested: $10,250
This deal involved some creative financing. I purchased a office building to run my insurance agency out of. After purchasing I was able to divide the space and rent out the other half of the building to a real estate broker.
What made you interested in investing in this type of deal?
Great cash flow for the money put down and the ability to force appreciation based on new rental income will allow me to pull some equity to use in another deal.
How did you find this deal and how did you negotiate it?
I wasn’t looking for it the deal was presented to me by someone who worked for the city I do business with and it was too good to pass up.
How did you finance this deal?
80% financed through a traditional commercial loan with a 5 year fixed note with a 20 year amortization. 15% financed through a 5 year fixed gap loan.
How did you add value to the deal?
Separated the space and added a bathroom. This allows the building to have 2 separate offices.
What was the outcome?
So far so good.
Lessons learned? Challenges?
Use local resources and personal networks to find out what is available for not only properties but financing options as well.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
No agent was used for this deal.
